Quickly brushing aside the fears sparked by Apple’s revenue warning on Tuesday, the markets immediately got back on the horse on Wednesday, attempting to resurrect last week’s rally.
With its commodity stocks in rebound mode the FTSE 100 was the morning’s best performer, leaping 1% higher to near 74507400. A 0.6% increase from the DAX pushed it above 13740, leaving it around 40 points shy of its recent record peak. The CAC, meanwhile, added 0.5%, as it hovered 20 points below 6100.
The Dow Jones, however, is currently facing a less excitable increase of just 0.1% when the US session starts – something that could sap the energy from its European counterparts later this afternoon.
The markets are arguably in a transition period between focusing on daily new case and death toll figures, to data that will show the economic impact of the coronavirus. Already on Tuesday they got a taste, not only with the Apple (NASDAQ:AAPL) statement but a drastic drop in the German and Eurozone-wide ZEW economic sentiment. Friday will be the biggie in this regard, bringing with it a wave of flash manufacturing PMIs. Until then, however, it seems like investors are content to ignore the warning signs for as long as possible.
Receiving a post-jobs report boost against the euro, but unable to maintain its gains against the dollar, the pound gets another test this Wednesday in the form of the latest inflation data. Analysts are expecting a sharp bounce, from 1.3% to 1.6% month-on-month.
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